The rise of technology ad spend in 2024

According to the latest Dentsu Global Ad Spend Forecast, the technology sector is expected to show strong growth in advertising spend through 2024, with a projected growth rate of 7.1%, well above the average growth rate of 4.6%. The innovative nature of this sector itself makes it highly visible in the market. Recent major breakthroughs in artificial intelligence will begin to deliver substantial results for a range of new products and services. The emergence of these new technologies has inspired companies to advertise more aggressively to ensure that their products gain a greater share of the market.

The innovative nature of the tech industry and advertising investment

The innovative nature of the tech industry has enabled the rapid development of artificial intelligence technology. Recent breakthroughs in the field of AI will prompt companies to invest more in advertising to ensure that their products gain sufficient exposure and market share in a competitive market. Developments in AI will not only lead to new products and services, but will also drive sales of devices such as smartphones, with new phones with enhanced features expected to be launched in 2024 to provide a richer experience for consumers.

Marketing opportunities

In addition to rapid technological advances, 2024 is set to be a major year for events. A host of events, including the Paris Olympics and Paralympics, as well as the UEFA Euro 2024 and CONCACAF soccer championships, will attract large audiences and provide a wealth of opportunities for advertising and marketing.

The tech industry has always had a preference for being at the forefront of media innovation, which has led to some high-profile new opportunities for marketers. For example, the Sphere in Las Vegas is proving to be an ideal outdoor canvas for advertisers to create memorable experiences, often shared on social media

However, the tech industry faces a computing power challenge. While supply chain issues have largely been resolved for 2022, new developments in artificial intelligence are taking up significant computing resources, including chips and cloud processing. This has forced some companies to limit access to resources and implement waiting lists instead of opening them up to all customers who want to buy. Just as other industries have had to cut back on advertising expenditures when their products are in short supply, we may see companies whose new products are so successful that they don't need to advertise at all to avoid a situation where demand exceeds available capacity.

Challenges ahead

However, the technology industry is facing a number of challenges. Supply chain issues have largely been resolved, but computing power and resources remain a bottleneck. As AI technology continues to evolve, so does the demand for computing resources, which may lead some companies to limit access to resources and introduce waiting lists to deal with the challenge of resource shortages. This is an important test for an industry that requires constant innovation and growth.

Consumer and business concerns

However, the tech industry also needs to face consumer and business concerns. Artificial Intelligence may have an impact on employment in some industries, as well as raising public concerns about its potential negative impact. Therefore, tech companies need to clearly explain the benefits and uses of AI technology, as well as its positive impact on society, in their advertisements to dispel public misconceptions and concerns.

Conclusion

To summarize, 2024 will be a critical period for the development of the technology industry. Technology companies will need to increase their advertising spending to meet growing market demand and explain the uses of their new products and services, as well as address challenges such as the shortage of computing resources. Through innovative marketing and clear communication, the tech industry is expected to grow even more during this period of challenges and opportunities.